California contractors are required to carry a $25,000 license bond to maintain an active license with the CSLB. Here is everything you need to know to get one, in the order you will need it.
A California Contractor License Bond is a surety bond required by the California Contractors State License Board (CSLB) to protect consumers and employees from financial harm caused by defective work, contract violations, or unpaid wages. The bond is a financial guarantee, not insurance for the contractor, and ensures that claims can be paid without the injured party pursuing the contractor directly. If a claim is paid, the contractor must reimburse the surety company for the full amount plus any legal costs.
Bond of Qualifying Individual: Required if the license is qualified by a Responsible Managing Employee (RME) or a Responsible Managing Officer (RMO) who owns less than 10% of the corporation. The amount is $25,000.
LLC Bond: Contractors operating as LLCs must carry an additional $100,000 LLC employee/worker bond to provide extra protection due to limited personal liability.
You will need your CSLB license number (or application number for a new license), your business entity name and type, and your qualifying individual’s name. Click the button below, complete the short form, sign the indemnity agreement electronically, and pay. Most applicants are approved the same business day. We send the executed bond directly to the CSLB and email you a copy.
The bond must remain active continuously; lapses trigger automatic license suspension. Contact your surety to renew or increase bonds as needed, especially if you previously used a cashier’s check in lieu of a surety bond. Claims can be filed by homeowners, other affected parties, or employees who suffer financial loss due to contractor violations. Note that you and your business are liable for claims paid by the surety, including claim costs (see the indemnity agreement section of the application). Surety bonds are not insurance in the traditional sense.
The bond protects the public and employees, not the contractor. Contractors are responsible for reimbursing the surety if a claim is paid. Understanding bond requirements is critical to avoiding license suspension and ensuring compliance with CSLB regulations. For more information, consult the CSLB’s official bond requirements or call us at (877) 328-1230.
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Your CSLB license number (or application number if you are applying for a new license), your business entity name and type, and the name of your qualifying individual. The online application takes about five minutes.
Most applications are approved and issued the same business day. The bond is filed electronically with the CSLB, which must receive it within 90 days of the effective date.
The bond must be written on the form approved by the California Attorney General and signed by the surety company's attorney-in-fact. Bonds we issue are on the approved form.
The CSLB will not issue, renew, or reactivate a license until the bond is on file, so you need it before the license is issued. For a new license, you can buy the bond once you have your application number.
Yes. Multi-year terms are available and lock in your premium rate for the full term.